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  • FIRST POST
    • marliepanda
    • By marliepanda 7th Mar 17, 1:13 PM
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    marliepanda
    Tax credit overpayment nightmare - please help
    • #1
    • 7th Mar 17, 1:13 PM
    Tax credit overpayment nightmare - please help 7th Mar 17 at 1:13 PM
    Hello

    5 years ago I had a joint tax credit claim with my ex partner.

    When it ended there was roughly a £360 overpayment, when we split.

    I have paid my half, £180 and was told that was my debt paid, about 4 years ago. Recently I got another letter asking for £90.

    I queried this and was assured, I had paid my half, this was just 'something that happened' (aka the remaining £180 my ex hadnt paid was halved again) but I was assured they could see I had paid me £180 and it was fine.

    Now I have a debt recovery letter from DWP acting for HMRC asking for £90 and theyre saying it will go to debt collectors or DEA. When I called the HMRC girl said the debt is just halved and halved (so in a few years Id be asked for £45 if he didnt pay, then 22.50, then 11, then 5...) Surely this is not correct?!

    I have raised a formal complaint as the next girl said this info was wrong and Id 'paid my half' but I am beside myself. Im saving for a house, putting in a mortgage app, I dont need this Ive created a payment plan in order to stop the debt recovery but what can I do? I know where my ex works, he will be using his NI number as its a 'proper' company. My fear is that theyre only doing a DEA for £90 on him too, and are making me pay 3/4 of the debt!

    Please help. Am I correct in saying HMRC policy means Ive paid my half and that is me finished?
    Survey Earnings 2017 - £163
Page 1
    • Darksparkle
    • By Darksparkle 7th Mar 17, 1:20 PM
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    Darksparkle
    • #2
    • 7th Mar 17, 1:20 PM
    • #2
    • 7th Mar 17, 1:20 PM
    Refer them to page 16 - https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509048/COP26.pdf
    • marliepanda
    • By marliepanda 7th Mar 17, 1:26 PM
    • 4,587 Posts
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    marliepanda
    • #3
    • 7th Mar 17, 1:26 PM
    • #3
    • 7th Mar 17, 1:26 PM
    Thank you Darksparkle. Thats so helpful. I think the first girl was maybe a bit confused she just said 'they try to recover as much as they can however they can and as Ive been contacting them theyve got my details.

    The girl who was taking the complaint details seemed slightly more confused by the occurance so hopefully it will get sorted.

    I rang thinking it was an old UC overpayment from Summer and its opened a whole can of worms.
    Survey Earnings 2017 - £163
    • Icequeen99
    • By Icequeen99 7th Mar 17, 7:32 PM
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    Icequeen99
    • #4
    • 7th Mar 17, 7:32 PM
    • #4
    • 7th Mar 17, 7:32 PM
    Thank you Darksparkle. Thats so helpful. I think the first girl was maybe a bit confused she just said 'they try to recover as much as they can however they can and as Ive been contacting them theyve got my details.

    The girl who was taking the complaint details seemed slightly more confused by the occurance so hopefully it will get sorted.

    I rang thinking it was an old UC overpayment from Summer and its opened a whole can of worms.
    Originally posted by marliepanda
    It sounds like the mistake has occurred when you moved to UC. The debt would have been transferred from HMRC to DWP to recover from your UC and then when UC stops, DWP continue to recover the debt. DWP are only recovering what HMRC have told them to, so definitely worth pursuing HMRC.

    IQ
    • marliepanda
    • By marliepanda 7th Mar 17, 8:22 PM
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    marliepanda
    • #5
    • 7th Mar 17, 8:22 PM
    • #5
    • 7th Mar 17, 8:22 PM
    It sounds like the mistake has occurred when you moved to UC. The debt would have been transferred from HMRC to DWP to recover from your UC and then when UC stops, DWP continue to recover the debt. DWP are only recovering what HMRC have told them to, so definitely worth pursuing HMRC.

    IQ
    Originally posted by Icequeen99
    I'm no longer on UC (was only recieving payment for a month but my claim closed after 6 months recently) would they still try to take from my UC when I've paid my half back?

    DWP just said it's been passed and had no info, so my 'complaint' is with HMRC and just waiting to hear back.
    Survey Earnings 2017 - £163
    • Icequeen99
    • By Icequeen99 7th Mar 17, 9:03 PM
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    Icequeen99
    • #6
    • 7th Mar 17, 9:03 PM
    • #6
    • 7th Mar 17, 9:03 PM
    I'm no longer on UC (was only recieving payment for a month but my claim closed after 6 months recently) would they still try to take from my UC when I've paid my half back?

    DWP just said it's been passed and had no info, so my 'complaint' is with HMRC and just waiting to hear back.
    Originally posted by marliepanda
    Yes, when you moved from tax credits to UC, the debt will have passed but if you only had UC for a month it is possible that they just didn't get sorted quickly enough to recover it. Obviously the error is in HMRC calculating any debt as owed in the first place - DWP only collect the figure they are told by HMRC.

    Did you receive any paperwork from HMRC or DWP to say the debt had been passed to DWP? How long was it between claiming tax credits and UC?

    IQ
    • Darksparkle
    • By Darksparkle 7th Mar 17, 9:31 PM
    • 4,429 Posts
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    Darksparkle
    • #7
    • 7th Mar 17, 9:31 PM
    • #7
    • 7th Mar 17, 9:31 PM
    HMRC are passing debts to DWP for recovery that don't have anything to do with UC also.
    • Icequeen99
    • By Icequeen99 7th Mar 17, 10:11 PM
    • 3,384 Posts
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    Icequeen99
    • #8
    • 7th Mar 17, 10:11 PM
    • #8
    • 7th Mar 17, 10:11 PM
    HMRC are passing debts to DWP for recovery that don't have anything to do with UC also.
    Originally posted by Darksparkle
    Yes, but not until 2018?

    http://revenuebenefits.org.uk/blog/minister-announces-dwp-to-recover-oustanding-tax-credits-debt

    Are you seeing it happen already?

    IQ
    • gbhxu
    • By gbhxu 7th Mar 17, 11:18 PM
    • 53 Posts
    • 14 Thanks
    gbhxu
    • #9
    • 7th Mar 17, 11:18 PM
    • #9
    • 7th Mar 17, 11:18 PM
    HMRC are passing debts to DWP for recovery that don't have anything to do with UC also.
    Originally posted by Darksparkle
    What about Section 187 of the Social Security Administration Act 1992?
    • marliepanda
    • By marliepanda 7th Mar 17, 11:32 PM
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    marliepanda
    Yes, when you moved from tax credits to UC, the debt will have passed but if you only had UC for a month it is possible that they just didn't get sorted quickly enough to recover it. Obviously the error is in HMRC calculating any debt as owed in the first place - DWP only collect the figure they are told by HMRC.

    Did you receive any paperwork from HMRC or DWP to say the debt had been passed to DWP? How long was it between claiming tax credits and UC?

    IQ
    Originally posted by Icequeen99
    Hello IQ.

    My tax credit claim closed in 2012! UC was claimed in august 2016. I received about £120 but after that my wages from my part time second job were too high (I picked up more shifts after loss of first job, until I got new FT work)

    I got a letter today from DWP stating that I owe £90 and to contact them or they would contact debt collectors. That is the first I have heard about the debt since last year when I got a HMRC letter which I called about and was told I had paid 'my half' and that my account showed that and I didn't have to worry. Haven't heard anything about it passing to the DWP until the letter today.
    Survey Earnings 2017 - £163
    • Darksparkle
    • By Darksparkle 8th Mar 17, 6:50 AM
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    Darksparkle
    Originally posted by Icequeen99
    My mistake, I thought I read something saying it had started
    • Darksparkle
    • By Darksparkle 8th Mar 17, 6:50 AM
    • 4,429 Posts
    • 2,781 Thanks
    Darksparkle
    What about Section 187 of the Social Security Administration Act 1992?
    Originally posted by gbhxu
    What about it???
    • Icequeen99
    • By Icequeen99 9th Mar 17, 7:07 AM
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    Icequeen99
    Hello IQ.

    My tax credit claim closed in 2012! UC was claimed in august 2016. I received about £120 but after that my wages from my part time second job were too high (I picked up more shifts after loss of first job, until I got new FT work)

    I got a letter today from DWP stating that I owe £90 and to contact them or they would contact debt collectors. That is the first I have heard about the debt since last year when I got a HMRC letter which I called about and was told I had paid 'my half' and that my account showed that and I didn't have to worry. Haven't heard anything about it passing to the DWP until the letter today.
    Originally posted by marliepanda
    Interesting, that certainly isn't my understanding of how the process is supposed to work.

    Perhaps get some advice - you could try www.litrg.org.uk or Citizens Advice.

    IQ
    • marliepanda
    • By marliepanda 15th Mar 17, 6:46 PM
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    marliepanda
    So it got to the 5 working days without a response to my complaint, so I called again.

    The debt management section of HMRC seemed to be totaly on my wavelength this time with regards to overpayment and said she could see I had paid half and due to my UC claim it had done something with regards to 'household makeup' and split the debt automatically without taking into account what was already paid.

    She said she is sending a reapportionment letter to DWP to remove the debt from my account. Fingers crossed all will be sorted soon.

    Yet another UC roll out faff on!
    Survey Earnings 2017 - £163
    • marliepanda
    • By marliepanda 14th Jul 17, 5:43 PM
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    marliepanda
    UPDATE: I have today received ANOTHER DWP overpayment letter, identical to the one in the OP. ALmost 4 months after being told it was sorted.

    Currently on hold. So frustrating!!
    Survey Earnings 2017 - £163
    • Alice Holt
    • By Alice Holt 14th Jul 17, 6:45 PM
    • 1,288 Posts
    • 1,406 Thanks
    Alice Holt
    .... due to my UC claim it had done something with regards to 'household makeup' and split the debt automatically without taking into account what was already paid.

    She said she is sending a reapportionment letter to DWP to remove the debt from my account. Fingers crossed all will be sorted soon.

    Yet another UC roll out faff on!
    Originally posted by marliepanda
    Indeed.
    UC admin continues to be very poor.

    https://www.citizensadvice.org.uk/about-us/how-citizens-advice-works/media/press-releases/citizens-advice-calls-for-universal-credit-rollout-to-be-paused-as-research-reveals-people-left-facing-financial-difficulty1/

    I'd suggest contacting your MP. If only that having voted it in, they should be made aware of UC failures.

    Hope you, eventually, sort it out. But, I guess, you are still on hold. If The Four Seasons wasn't out of copyright Vivaldi's heirs would be very, very rich!
    Last edited by Alice Holt; 14-07-2017 at 6:52 PM.
    • marliepanda
    • By marliepanda 14th Jul 17, 7:30 PM
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    • 9,210 Thanks
    marliepanda
    Indeed.
    UC admin continues to be very poor.

    https://www.citizensadvice.org.uk/about-us/how-citizens-advice-works/media/press-releases/citizens-advice-calls-for-universal-credit-rollout-to-be-paused-as-research-reveals-people-left-facing-financial-difficulty1/

    I'd suggest contacting your MP. If only that having voted it in, they should be made aware of UC failures.

    Hope you, eventually, sort it out. But, I guess, you are still on hold. If The Four Seasons wasn't out of copyright Vivaldi's heirs would be very, very rich!
    Originally posted by Alice Holt
    I claimed UC for all of 5/6 weeks, I haven't claimed for almost 9 months

    HMRC had no records since my March letter, and debt reapportionment.
    DWP said the letter was sent on the 8/7/17 and a payment cleared the balance on 13/7/17. They said it was a reallocation from HMRC as if they'd 'paid on my behalf' I have no idea. I took the guys name and date/time so hopefully I have back up to show it's okay...

    It must have been cancelled in march as a I set up a 'just in case' payment plan and no payments have ever been taken from that, such a mess and DWP couldn't explain why it was reopened then reclosed.

    As soon as HMRC passes it to DWP they wipe their hands of it but then the DWP have no history on the debt to explain anything to you and you end up going back and forth to try and work out what's happening.
    Survey Earnings 2017 - £163
    • Icequeen99
    • By Icequeen99 15th Jul 17, 8:24 AM
    • 3,384 Posts
    • 2,300 Thanks
    Icequeen99
    I claimed UC for all of 5/6 weeks, I haven't claimed for almost 9 months

    HMRC had no records since my March letter, and debt reapportionment.
    DWP said the letter was sent on the 8/7/17 and a payment cleared the balance on 13/7/17. They said it was a reallocation from HMRC as if they'd 'paid on my behalf' I have no idea. I took the guys name and date/time so hopefully I have back up to show it's okay...

    It must have been cancelled in march as a I set up a 'just in case' payment plan and no payments have ever been taken from that, such a mess and DWP couldn't explain why it was reopened then reclosed.

    As soon as HMRC passes it to DWP they wipe their hands of it but then the DWP have no history on the debt to explain anything to you and you end up going back and forth to try and work out what's happening.
    Originally posted by marliepanda
    I think it might be time to get some help with it - try one of the tax charities www.litrg.org.uk or CAB or a local welfare rights unit.

    IQ
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